Trade Alert: Buy Crude Oil NOW!

In my last issue, I told you that unless I saw a truly great opportunity where the potential reward vastly outweighed the risk, I would not be very aggressive heading into the holiday period and preferred instead to simply be patient.

That remains the case. But right now, there are two exceptions. So I’ll cut right to the chase …

FIRST, if – for whatever reason – you have not already purchased the ProShares UltraShort Euro January 2017 EUO call options strike price $28 (EUO170120C00028000) … or its underlying ETF (EUO) … then please do so now, per the instructions in the trade table below.

Reason: There is increasing evidence the upward bounce in the euro is coming to an end, and that a new powerful leg lower could start any moment.

(Also hold your ProShares UltraShort Euro Feb-16 $28 calls (EUO160219C00028000). If you do not own these, for whatever reason, wait for my next signal).

SECOND, and importantly, I am seeing increasing evidence that oil has put in at least a temporary bottom and that a strong rally could begin at any moment. Two reasons:

First, cycles are turning up, sharply. Consider the cycle forecast chart here, showing the linear or fixed cycles (blue line) and the dynamic, neural net cycles (green line).

Both cycle analyses are moving higher, at a steep angle, the fixed cycles showing a rally into February 15, the dynamic models showing that the rally could extend into January 14.

Typically, when I see this type of configuration, the date for the high tends to fall somewhere in the middle of the two dates, which would be roughly the first of February.

Regardless, it is a bullish setup for oil.

Second, the chart pattern and trading action is also looking nicely bullish.

Since oil’s low at $35.35 (February futures contract) two days ago, oil has been creeping higher …

Following the angle of the medial line you see on that chart quite nicely, with a successful first pullback yesterday.

This is nice bottoming action and when combined with the cycles forecast, indicates a potential powerful rally with a test, at minimum of the $39.50 level, and quite possibly as high as the $42 level.

Importantly, this does not mean that oil has bottomed long-term. That is a conclusion that’s simply too early to make.

The important point is that a very nice trade appears to be shaping up in oil; one that should be taken advantage of.

I’ll get to the details in a minute. Let’s review a few other matters first.

Gold: While we’ve seen a bounce in gold of late, it’s following the latest cycle forecast to the tee. You can see the action in the latest cycle forecast chart here. Gold should plummet into the first week of the new year – then take off to the upside like a bat out of hell. Same for silver.

Hold your shares in DZZ with a good-till-cancelled protective sell stop at $6.53.

If not on board DZZ, do not buy now. Wait instead for the new year and my next recommendation.

Stock markets: Their defiance of gravity is a testament to the long-term strength in the U.S. equity markets. But short term, the cyclic changes occurring in equity markets are changing.

In last Tuesday’s webinar, I pointed out that the market was running out of time to decline. That picture is now changing.

Notice in this forecast chart for the S&P 500 how it is now pointing lower into March 21 of next year!

I find this fascinating, since it is almost precisely the opposite of gold, which is showing a rally starting in January that persists into March!

Bottom line: Hold your shares in UVXY with a good till cancelled protective sell stop at $22.24.

If you do not own shares in UVXY, wait for my next recommendation. Also note: If we are stopped out of UVXY, for whatever reason – and the cycle forecast continues to confirm a move lower in stocks into March – I will naturally look to position the portfolio accordingly.

Now, for the details for today’s trades:

Go ahead and get the above orders that pertain to your portfolio in to your broker.

Enjoy the holidays but stay tuned. 2016 is shaping up to be a year chock full of profit opportunities, and right from the get-go.

Best wishes, as always …

Larry